Auckland Health Board chairman confident on big cut

By MARTIN JOHNSTON health reporter

The chairman of central Auckland's hospitals believes they will make Government-ordered savings of $10 million without cutting services.

Auckland District Health Board's management, on the other hand, has said service cuts will be needed.

Board chairman Wayne Brown said yesterday: "I'm convinced we will find the $10 million without cutting services.

"I'm just going to rely on relentless pressure. It's worked pretty good so far."

He expected managers to deliver good financial results, by measures such as rigidly applying the freeze on new jobs above existing levels.

"There was a freeze in the six months before I arrived [last December]. During that time 230 extra staff arrived."

The Health Ministry rejected the board's predicted $86 million deficit and demanded savings of $25 million.

But it agreed to give $15 million extra to help with interest and capital charges.

The chief executive, Graeme Edmond, has found ways of saving $15 million.

They include capping the growth of many services, meaning some patients will have to be slightly sicker to receive treatment.

This is as well as a $14 million saving from a job-cutting and job-merging scheme in preparation for the shift into a new hospital next year.

But Mr Edmond has said the board has gone as far as it can in budget cuts without affecting the quality of services.

A report by a board official warns that budget cuts and staff shortages are "compromising quality of service and safety of patient care".

But Mr Brown dismissed these concerns. He said that in the year to June 30, the board had completed its contracted work for a lower deficit than planned and had not been investigated by the Health and Disability Commissioner's office.

Last December, the deficit was heading towards $80 million, he said, but had been hauled back to $66 million by the financial year's end.

He said that under his stewardship, the board had regained the Government's confidence.

But the ministry said yesterday that the board was still under intensive financial monitoring.

nzherald.co.nz/hospitals